Schrader sold to Constellation

[ToddFrench]

@Merrill Lindquist

Not getting rich here very quickly.

I’ve been to your home/vineyard - ‘rich’ can be defined many ways, Merrill. I think you know you are rich in life, with a most enviable, pastoral homestead and winery. Who knows, Constellation might come knocking one day and you’ll have riches in another way

[Dan_Hammer]

I received the e mail too. I was surprised because I was thrown off the list.

[Mel_Knox]

As a vendor, or a semi-retired one, I can opine re Mondavi and Araujo/Eisele. Mondavi seems to be doing now pretty much what they were doing then. Of course, there are changes, but I think Constellation has a if it aint broke, don t fix it approach.

There are changes at Araujo/Eisele, but the goal is to make the wine better, not to get ten tons an acre.

Let’s not forget that many of these wineries, where big companies took over, were not that profitable.
Chalone Group never made much money, for example. Sometimes brands just get old.

[Merrill_Lindquist]

@Todd F r e n c h

@Merrill Lindquist

Not getting rich here very quickly.

I’ve been to your home/vineyard - ‘rich’ can be defined many ways, Merrill. I think you know you are rich in life, with a most enviable, pastoral homestead and winery. Who knows, Constellation might come knocking one day and you’ll have riches in another way

Understood. Thank you for your comments. It is pretty special, but a lot of hard work and, yes, risk. It would never go to a large wine concern. I am pretty protective of this property. I hope I never describe myself as being a “steward of the land.” That’s just total BS. But this is where I brought up my daughter, learned about wine, and have my pets. All important to me.

Just saw Mel Knox’s post - would love to host you here, Mel.

Can you merge this thread? We have 2 going on.

[GregT]

Interesting that Schrader had no vineyard holdings.

Neither did Meiomi for which they paid $285M, or the Prisoner, for which they paid $315M. They’re buying brands, and I guess they see Schrader as a luxury brand. Interestingly, they said that the Prisoner was a luxury brand as well.

[Mel_Knox]

Merrill,

Now that I am retired I have all the time in the world, so visiting you sounds great.

[Merrill_Lindquist]

@Mel Knox

Merrill,

Now that I am retired I have all the time in the world, so visiting you sounds great.

Send me an email! It will be great fun! I retired…once.

[Anton_D]

@Markus S

Wonder if there is any tie-in with the Amazon-Whole Foods buy?

On the same day, no less!

“Alexa, buy Schrader wine.”

[R_Gleiberman]

@Humberto Dorta

Hmmm. Well we shall see. Might free up some cash

That was my 1st thought!

[PaulMills]

@Todd F r e n c h

@Merrill Lindquist

Not getting rich here very quickly.

I’ve been to your home/vineyard - ‘rich’ can be defined many ways, Merrill. I think you know you are rich in life, with a most enviable, pastoral homestead and winery. Who knows, Constellation might come knocking one day and you’ll have riches in another way

I would opine that anyone posting on a wine forum is “rich”.


I finally made the Schrader list and passed on the purchase due to the cost of four bottles, but bought two from a friend on the list. I do not think think I will regret passing since there is so much other wine out there to buy, but I think I will make the list again much sooner than if Constellation had not bought them.

[Merrill_Lindquist]

@PaulMills

@Todd F r e n c h

@Merrill Lindquist

Not getting rich here very quickly.

I’ve been to your home/vineyard - ‘rich’ can be defined many ways, Merrill. I think you know you are rich in life, with a most enviable, pastoral homestead and winery. Who knows, Constellation might come knocking one day and you’ll have riches in another way

I would opine that anyone posting on a wine forum is “rich”.

No offense, Paul, but that is pretty narrow thinking. All you need is an internet connection and an interest.

[David_Crow]

@Steve Crawford

@John Morris

I’m curious, is anyone aware of a case where a top-flight small winery was acquired by a big company where it was good for the wine? I’m not asking to be pissy. I’m really curious is anyone has examples where it’s worked out well for wine lovers.

the comps aren’t exact. but the best example i can think of is livingston moffet into dana. realm may honestly fit this definition as well. they essentially were bought out, and have been doing quite well since.

Who did Realm sell to, or who are their investors financing their expansion?

[Randy_Bowman]

Constellation buys Schrader
Kendall Jackson buys Siduri
Gallo buys Orin Swift and Stage Coach vineyard

Amazon buys Whole Foods
Walmart buys Bono Bos

Does that help in figuring out where it’s all going? Ownership of the largest slice of the pie. Control of production and price. Elimination of competition. This is dollar signs. Not stewardship.

[Anton_D]

Robocop and Judge Dread, here we come!

[Randy_Bowman]

@Anton D

Robocop and Judge Dread, here we come!

Explain

[Kim_Z]

@Randy Bowman

Constellation buys Schrader
Kendall Jackson buys Siduri
Gallo buys Orin Swift and Stage Coach vineyard

Amazon buys Whole Foods
Walmart buys Bono Bos

Does that help in figuring out where it’s all going? Ownership of the largest slice of the pie. Control of production and price. Elimination of competition. This is dollar signs. Not stewardship.

Or perhaps just capitalism. If one builds a business and gets a lucrative offer to sell, why not? Unless you’re still young or your scions are revving to go, why not sell out at a big profit? You’ll have plenty of cash, and won’t have to worry about labor, regulations, taxes, global worming, tsunamis, etc. Plus you can send a big check to gov Moonbeam and get it over with.

Then you’ll still have enough money for good wine, as long as you have friends in your debt.

[Randy_Bowman]

Ken, that part I understand. Dan Duckhorn is a regular customer. He built an empire of three wineries but had nobody to take it over, so it was a retirement through sale. We will have to something similar as our money is in inventory, etc.

“Robocop and Judge Dread, here we come!” Ridiculous. His response should have been Soylent Green.

[NoahR]

Speaking of Duckhorn, has any acquisition like this led to better wine?

[DAlmeida]

@Randy Bowman

Constellation buys Schrader
Kendall Jackson buys Siduri
Gallo buys Orin Swift and Stage Coach vineyard

Amazon buys Whole Foods
Walmart buys Bono Bos

Does that help in figuring out where it’s all going? Ownership of the largest slice of the pie. Control of production and price. Elimination of competition. This is dollar signs. Not stewardship.

A couple of weeks ago it was said that Constellation made a bid for Brown-Forman (Jack Daniels,etc) but that Brown -Forman turned them down…They must have money burning holes in their pockets !..

[Richard_Shin]

I have noticed that Schrader has held the line in terms of release pricing on the mailing list for the past several years. While not cheap, the value compared to many other cult wineries was pretty good.

I imagine that will change with the acquisition…and probably with the next release.